Working Capital Sources Commercial Lenders | 7 Park Avenue Financial

Header Graphic
Call Today For Canadian Business Financing Expertise tel 416 319 5769 !
Commercial Lenders In Canada: No Black Box Needed To Locate Working Capital Sources
Getting To Know Sources Of Working Capital In Canada



YOUR COMPANY IS LOOKING FOR COMMERCIAL FINANCING!

WORKING CAPITAL LOANS FOR SMALL BUSINESS CAPITAL NEEDS IN CANADA

You've arrived at the right address! Welcome to 7 Park Avenue Financial

Financing & Cash flow are the biggest issues facing business today.

ARE YOU UNAWARE OR   DISSATISFIED WITH YOUR CURRENT  BUSINESS  FINANCING OPTIONS?

CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs

EMAIL - sprokop@7parkavenuefinancial.com

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

best working capital loans

Working capital sources in Canada often seem hard to come by for Canadian business owners and financial managers. And you don't need a ' black box' to locate the key information you need around commercial lenders, offering quite frankly a dizzying array of financial solutions to the cash flow challenges your business faces.  Business funding can come from short term and long term solutions. Let's dig in.

 

LET YOUR BALANCE SHEET IDENTIFY WORKING CAPITAL NEEDS

 

Your firm's need for cash flow and working capital solutions will almost always be evident from your balance sheet. But can the business get approved for, and in fact, support the type of finance solutions that revolve around working capital?

 

GROWING BUSINESSES CONSUME CASH!

 

A growing business (much more than a start-up or a company with fairly flat revenues year over year) eats cash. That's because the day to day needs of fixed asset obligations and the continual need to build up inventory and receivables due to the sales growth is a massive consumer of cash.  

 

SALES GROWTH REQUIRES HIGHER  INVESTMENTS IN CURRENT ASSETS  SUCH AS A/R AND INVENTORY

 

Some concepts are difficult to explain to clients who are more focused on sales growth, profits, etc - which by the way are all good things.  A simple way we explain it sometimes is that the whole situation around ' working capital' revolves around understanding what your customers owe you and your total current ongoing investment in A/R and inventories.

 

 You might have some positive cash on hand, and you ' might' have access to revolving credit facilities, but at the end of the day, those balance sheet accounts are going to dictate the ' cash flow' situation.  Theirs a whole handful of  ' cash flow' definitions but we'll get into that some other time! Business loans via term loans can inject permanent working capital into your business. Revolving credit lines of course allow you to pay interest only on what funds you have drawn down.

 

working capital loans

 

CASH FLOW NEEDS VARY BY INDUSTRY

 

Every company is naturally different, a tech firm specializing in software solutions in fact does not need to worry about ‘inventory ', while a retailer's total business revolves around financing the inventory component of their business.  A wholesale distributor might have great sales, profits, but be cash-strapped because they have demand for more orders and no cash because clients won't be paying them in another 60-90 days - and we won't even get into seasonality and bulges in business!

 

The good news is that your business has access to working capital financing within banking solutions, and outside Canadian chartered bank solutions. Those include:

 

A/R Financing / Accounts Receivable Factoring/ Confidential Receivable Financing


Inventory Loans


Access to Canadian bank credit/line of credit facilities


Non bank asset based lines of credit


SR&ED Tax credit financing


Equipment / fixed asset financing


Cash flow loans


Royalty finance solutions

 

Purchase Order Financing

 

Short Term Working Capital Loan / Merchant Cash Advance - a good personal credit score by owner/owners required and these solutions come with a higher rate but are easily accessible

 

Securitization

 

 

SHORT TERM FINANCE SOLUTIONS 

 

It's critical to think of this type of financing as short term, and commercial lenders in Canada will always be a bit more, or a lot more expensive than the low cost financing we associate with our banks. In many cases, the finance solutions are very specifically structured to the type of business situation your firm finds itself in.

 

ASSET BASED LENDING SOLUTIONS 

 

While commercial lenders can't compete on price, they definitely compete on the solutions you need to secure asset financing. Focus on need, opportunity to grow, and cost and structure when looking at working capital sources you require operating and growing. Even real estate finance needs can be addressed by funding solutions such as a bridge loan. 

 

financing of working capital

CONCLUSION

Small business owners are always looking for a short term working capital business loan solution, so consider seeking out a trusted, credible and experienced Canadian business financing advisor to in effect become your ' black box' for critical info on finance solutions in Canada.

 

 

Click here for the business finance track record of 7 Park Avenue Financial





7 Park Avenue Financial/Copyright/2021/Rights Reserved

' Canadian Business Financing With The Intelligent Use Of Experience '

 STAN PROKOP
7 Park Avenue Financial/Copyright/2024

 

 

 

 

 

Stan Prokop is the founder of 7 Park Avenue Financial and a recognized expert on Canadian Business Financing. Since 2004 Stan has helped hundreds of small, medium and large organizations achieve the financing they need to survive and grow. He has decades of credit and lending experience working for firms such as Hewlett Packard / Cable & Wireless / Ashland Oil